Shares in RBS on the slide as Andrew Tyrie renews call for bank to be split
Wednesday 28 August 2013
Shares in Royal Bank of Scotland fell 4 per cent yesterday after the chairman of the Parliamentary Commission on Banking Standards again called for the taxpayer-owned bank to be split up.
The MP Andrew Tyrie said: "We argued that it was important for all options for its future structure to be examined as a matter of urgency before any decisions were taken, including the so-called good bank/bad bank split."
That split has been supported by the former Bank of England Governor, Lord King, and the former Chancellor and commission member, Lord Lawson.
The Treasury is investigating whether splitting up RBS would speed its recovery, increase its ability to lend and, ultimately, improve prospects for selling the taxpayers' 82 per cent stake.
But James Chappell, a banking analyst at Berenberg, said the intervention was unhelpful. "The political meddling continues to make RBS uninvestable," he said. "RBS has already split the business into core/non-core once – it is unclear what can be achieved doing this again."
Mr Tyrie, in a letter to the Financial Times, said he welcomed the Treasury's examination of the options and that "no obstacles should be put in the way of a full examination of all aspects of such a split".
He added: "Formal accounting conventions should not be allowed to get in the way of what is best for the economy in general and the SME sector, for whom bank finance is particularly important."
- 1 Planes go hybrid-electric in important step to greener flight
- 2 North Korean prison officers 'cooked prisoner's baby and fed it to their dogs', more horrific accounts from UN report reveal
- 3 Antonio Martin shooting: Mayor says there should be 'no comparison' to Ferguson
- 4 Antonio Martin shooting: Police and protesters clash over teenager's death just five miles from Ferguson, Missouri
- 5 British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...